Huobi charges former manager for illegally pocketing $5M

Sahana Kiran
Source – Unsplash

Lately, lawsuits in the crypto market have been surfacing. From Ripple to Elon Musk, an array of entities and individuals have been slapped with a lawsuit. Now, Huobi was taking action against its former employee for carrying out illicit trading and pocketing $5 million.

A recent report revealed that Chen Boliang, a former senior manager at Huobi was slapped with a civil lawsuit. Boliang reportedly oversaw institutional clients at the firm’s Hong Kong wing. The lawsuit alleges that the former manager went on to roll out a retail trading account in his father’s name. Through this, he managed to extend a $20 million credit line and then went on to trade it against a corporate account that he managed.

Through this, the former Huobi employee gained profits of $5 million in the prominent stablecoin USDC.

Huobi Global sacked Boliang back in 2020

While the world was dealing with the onset of a deadly pandemic, Huobi was busy charging Boliang for illicit trading. The former employee carried out the trade between February and March 2020.

After terminating his employment in May of the same year, Boliang was arrested. The report further suggested that Boliang was charged for accessing the exchange’s computer systems with criminal and dishonest intentions.

Additionally, it was noted that Boliang was out on a $25,000 bail. Therefore, Huobi wanted to hit him back with a lawsuit. Speaking about the same, a spokesperson from the firm told Financial Times,

“Mr. Boliang Chen’s employment with Huobi Global was terminated in May 2020. We have no further comments pertaining to the charges against Mr. Boliang Chen and believe in the administration of justice by the HK Special Administrative Region.”

The value of cryptocurrencies witnessed a prominent rise during 2020. The market was finally recovering from its 2018 bear market and managed to record new highs. The surging value of the industry lured in several and unfortunately perpetrators as well. Now, as the bears have made a comeback, Huobi seems to be dealing with an internal mishap.